Mro Sourcing Goes Global

MRO sourcing goes global

It is critical for any organization or business to seriously analyze and implement maintenance, repair and operations (MRO) goods and services that will help the company achieve it organizational goals. Johnson, Leenders, & Flynn (2010) explain "Identifying and streamlining key business processes to reduce costs, grow revenues, and manage assets represents an opportunity in most organizations" (p. 77). This is important when applying the concept to maintenance, repair and operations (MRO) goods and services for any company or organization. Scott Singer (as cited in Avery, 2009) tells us "You want a superior unit price, a fair and reasonable mark up and a fulfillment model that provides the service you need" (line 3). With the advent of the globalization of world markets, companies have been forced to transform their strategic plan to accommodate these new emerging markets and competitors around the globe. This has forced companies to direct their efforts to create a strategic plan for taking care of their maintenance, repair and operations (MRO) goods and services associated to the sourcing strategy.

In efforts to alleviate much of the challenges to maintenance, repair and operations (MRO) goods and services of The Department of Defense (DoD), the Defense Logistics Agency (DLA) was created to serve as a government entity the handle maintenance, repair and operations (MRO) goods and services for the United States military organizations. The Defense Logistics Agency website (2012) describes some of their responsibilities as an organization such as in fiscal year 2011, DLA provided $46.1 billion in sales and revenue to the DoD. DLA is considered to be in the top 10th percentile of the Fortune 500. DLA manages eight supply chains and 5 million items. The agency also manages the storage and disposal of strategic...